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How does prior lucky event affect individual’s risk taking preference?

Abstract

We conducted a controlled experiment with Philippines domestic helpers and Lingnan undergraduate students to study if prior “lucky” event will increase their risk-taking behaviour. The major finding from our study is that prior lucky events do increase risk-taking behaviour among Philippines domestic helpers but not for students. Our study also found out that there are inconsistent behaviour of interviewees while choosing for options indicating their risk preference and this degree of inconsistency is greater among the Philippines group compared to the students group

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